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Please provide steps and clearly explain how you obtained mu and theta. Will upvote! A stock price index follows the lognormal stock price model In
Please provide steps and clearly explain how you obtained mu and theta. Will upvote!
A stock price index follows the lognormal stock price model In (St/S.) ~ N (ut, ot). You are given the following observations on the stock index price. Observation Observation Time Stock Index Price Observed 1 0 900 2 1/12 950 3 2/12 988 4 3/12 1060 5 4/12 956 6 5/12 827 7 6/12 890 8 7/12 1020 9 8/12 1095 10 9/12 1242 Estimate u and o using this dataStep by Step Solution
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